Will Europe’s Privacy Concerns Affect Google Inc (GOOG)?

Page 1 of 2

Europe is known to have relatively strong consumer protection laws, and a number of countries have threatened Google Inc (NASDAQ:GOOG) with fines in the wake of the PRISM tracking scandal. While talk of enraged European regulators sounds dangerous, it isn’t likely that there will be a serious hit to Google’s bottom line. France’s fine for the street view snooping fiasco was a whopping 100,000 euros–chump change for a company that brought in $3.3 billion in total net income last quarter.

Google Inc (GOOG)

What Is the Worst that Can Happen?

By adding up all of the potential fines, Google Inc (NASDAQ:GOOG) is facing a total bill of a couple million Euros, nothing more. The United Kingdom has changed its cookie law and tried to make consumer’s rights clearer, but websites in the country continue to operate perfectly well. Google is very profitable in the United Kingdom, with a market share around 90%, and it is not like things will change any time soon. On a separate note EU antitrust regulators have required Google Inc (NASDAQ:GOOG) to change how it displays some of its results, but these changes are not monumental.

There is a good chance that Microsoft Corporation (NASDAQ:MSFT) won’t be left out of the party. Its Bing search engine is nowhere near as prevalent in Europe as Google, but PRISM is reported to be involved with Microsoft. If the company is fined a couple million Euros it won’t be a big hit for the company, as its total net income of $6 billion last quarter.

If anything, Microsoft Corporation (NASDAQ:MSFT) may benefit from tighter European data privacy laws vis-à-vis Google. Google Inc (NASDAQ:GOOG) runs massive third party ad networks with its Adsense program. Microsoft has no expansive ad network like Adsense and it is less exposed to the online advertising market. In 2012 Google made net digital ad revenues of $32.7 billion dollars while Microsoft Corporation (NASDAQ:MSFT) made $1.7 billion. To increase its Adsense revenue, Google collects as much user data as possible and then sells ads based upon these profiles. If Europe significantly decreases the amount of data that companies can collect, Google Inc (NASDAQ:GOOG) could see its revenue fall. For the time being this is just a distant possibility.

A Possible Winner in the Midst of the PRISM
Scandal

Yandex NV (NASDAQ:YNDX) is the most popular search engine in Russia. By focusing on the Russian market and developing a quality local search experience, it holds a market share around 60%. With the Cold War still relatively fresh in the Russian government’s mind, Russian American relations can be very chilly. Although the cold war might be over, the Russian government is doing all that it can to push the U.S. out of Eurasia. In fact there is talk of a Eurasian Union, and Russia is very excited to regain some of its former strength.
Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!